girlygoth91
Mar 4, 2012, 01:36 PM
XYZ Company recorded the following information related to their inventory accounts for January:
January 1, 2003 January 31, 2003
Direct materials 10,000 17,000
Work in process 11,000 ?
Finished goods 16,000 9,000
Additional information is as follows:
Direct materials purchased... $19,000
Direct labor... 15,000
Applied overhead... 16,000
Operating income... 30,000
S&A expenses... 20,000
Sales revenue... 90,000
Calculate the work in process inventory balance on January 31.
_________________________________________________
This is what I've gotten so far:
Beginning wip 11,000
direct materials used 12,000
direct labor 15,000
applied overhead 16,000
- ending wip ?
= cost of goods manufactured
I don't understand how I can calculated ending WIP without the cost of good manufactured, since COGM can't be calculated without ending WIP!
January 1, 2003 January 31, 2003
Direct materials 10,000 17,000
Work in process 11,000 ?
Finished goods 16,000 9,000
Additional information is as follows:
Direct materials purchased... $19,000
Direct labor... 15,000
Applied overhead... 16,000
Operating income... 30,000
S&A expenses... 20,000
Sales revenue... 90,000
Calculate the work in process inventory balance on January 31.
_________________________________________________
This is what I've gotten so far:
Beginning wip 11,000
direct materials used 12,000
direct labor 15,000
applied overhead 16,000
- ending wip ?
= cost of goods manufactured
I don't understand how I can calculated ending WIP without the cost of good manufactured, since COGM can't be calculated without ending WIP!